New Economics Of Labor Migration Research Articles

Time to Mainstream the Environment into Migration Theory?

As with all social processes, human migration is a dynamic process that requires regular theoretical reflection; this article offers such reflection as related to the role of the natural environment in contemporary migration research and theory. A growing body of evidence suggests that environmental contexts are increasingly shifting social and ecological realities in ways that are consequential to migration theory. We review some of this evidence, providing examples applicable to core migration theories, including neoclassical economic and migration systems perspectives, the "push-pull" framework, and the new economics of labor migration. We suggest that neglecting consideration of the natural environment may yield misspecified migration models that attribute migration too heavily to social and economic factors particularly in the context of contemporary climate change,. On the other hand, failure to consider migration theory in climate scenarios may lead to simplistic projections and understandings, as in the case of "climate refugees". We conclude that migration researchers have an obligation to accurately reflect the complexity of migration's drivers, including the environment, within migration scholarship especially in the context of global climate change.

Incomplete Urbanization and the Trans-Local Rural-Urban Gradient in China: From a Perspective of New Economics of Labor Migration

The urbanization in China is “incomplete” and the migration of non-hukou migrants is circular, wherein rural migrants often keep their rural land in the home village as a social safety net. The informal housing market is one of the main housing providers for migrant workers. Existing studies see informal housing as the migrants’ passive choice under the discriminatory hukou system, while underplaying the migrants’ familial multi-site tenure strategies between village homes and city places. As suggested by New Economics of Labor Migration (NELM), attachment to a place of origin (such as keeping hometown lands), while choosing informal housing at the destination, is a familial utility maximization strategy that can control risks when migrating between locations. Informal housing areas, therefore, become a trans-local rural-urban gradient and semi-urban landscape. We use the 2017 Migrant Dynamics Monitoring Survey data and the binary logistic regression to examine (a) whether hometown landowning is a significant predictor of the migrants’ choosing of a temporary stay in informal settlements in urban destinations, and (b) which kind of hometown land arrangement (farmland or homestead holding or both of them) is the strongest indicator of the higher probability of staying in informal settlements in urban destinations? The data analysis reveals that homestead in hometown is a more prominent pulling factor than farmland to “glue” rural migrants together within an integrated rural land “insurance regime” between the migrant-sending and -receiving places. The land-use and informal housing governance (including urban village demolition) ignore the trans-local nature of the migratory networks and semi-urbanizing dynamics. The traditional analysis of the rural-urban gradient with many landscapes should consider the functional and tenurial linkage between the locations at different points along with the complex migration activities.

Conditional Cash Transfers and Migration: Reconciling Feminist Theoretical Approaches With the New Economics of Labor Migration.

In 2019, I published a study titled "Reexamining the Influence of Conditional Cash Transfers on Migration from a Gendered Lens," to which Oded Stark has since issued a formal comment. This response has been written to address the major themes of Stark's comment. While the first three sections focus on specific items related to framing, selection bias, and endogeneity, the fourth and final section tackles a more substantive theoretical debate between Stark and me over how to conceptualize the New Economics of Labor Migration framework in relation to gender. In my original paper, I argued that conditional cash transfers (CCTs) are gendered in their program conditions in ways that promote a normative gendered division of labor and that constrain beneficiary women from migrating. I note here that Stark's primary issue with this point appears to be his contention that CCTs are not necessarily gendered but rather that women have a comparative advantage in completing housework and care work. My response first compares Stark's argument to that made by Gary Becker in A Treatise on the Family and engages with the literature that has emerged to critique Becker's own arguments regarding gendered comparative advantage. I then conclude my final section by offering some suggestions that might open a common theoretical path forward-one that insists on grounding microeconomic analyses of family behavior on assumptions that take gender and other aspects of culture and institutions seriously and one that also moves toward a bargaining model of microeconomic behavior rather than one that assumes consensus among all relevant actors.

Do international remittances accelerate out-farm labor migration in developing countries? A dynamic panel time-series analysis

PurposeA major policy issue facing leaders in the developing world is whether international migration, through remittances, contributes to the development process in migrant-sending communities or impedes the efficient allocation of labor and human capital at the origin countries. This study examines the impact of remittance inflows on out-farm migration of farm labor toward the nonfarm sector. Specifically, this study shows how international migrant remittances may alter the predictions of out-farm migration models by Harris–Todaro.Design/methodology/approachThe authors use unbalanced panel time-series data on 77 developing countries between 1991 and 2010 within a dynamic panel time-series framework to estimate the impact of remittances on the out-farm migration rate.FindingsThe authors find two competing effects of remittances on out-farm migration of labor in developing countries. First, remittances decelerate the out-farm migration rates by supplementing farm income and consumption expenditures. Second, remittances provide a source of investment in nonfarm activities that increase the rate of migration out of agriculture over time. Combining these effects, on average, our elasticity estimates indicate that a 10% increase in remittances reduces the migration out of agriculture, on average, by 0.5% in developing countries over time.Research limitations/implicationsThe authors findings align with the “developmentalist” or “optimistic” views of international migration. International migration, through remittances, help make the inevitable transition out of the farm sector smoother for developing countries.Originality/valueTo the authors’ knowledge, this is the first study to extend the empirical literature on macro-level determinants of out-farm migration within the Harris–Todaro framework to explicitly account for the impacts of remittances inflows into developing countries that the new economics of labor migration (NELM) theory hypothesizes.

International migration and household living arrangements among transnational families in Brazil

ABSTRACT Much has been discussed in the international literature about the relationship between family arrangements and migration decision-making, although few studies have done so through the analysis of quantitative data from migrants’ countries of origin. Based on the theoretical contributions brought by the New Economics of Labor Migration and Transnationalism, we investigate how three intervening factors affect household living arrangements in the migrant’s country of origin: people’s life-cycle stages, migration regimes, and family normative systems. Using as case study the municipality of Governador Valadares, Brazil, the country’s main international emigration hotspot, we draw on a mixed-methods approach that includes the analysis of the Brazilian Census and novel survey data, in addition to 20 in-depth semi-structured interviews with migrants’ relatives and returnees. The results point to clear differences between the structure of households with and without international emigrants. The reasons for these differences may be two-fold: (a) international emigration is an important factor leading to the rearrangement of family care systems, and (b) migration decision-making processes are dependent upon particular household structures, family norms and migration regimes.

Does labor off-farm employment inevitably lead to land rent out? Evidence from China

The focus of land economics is on how to decrease the misallocation of resources to achieve an optimal allocation of resources. Both the theories of new economics of labor migration (NELM) and the conclusions of empirical studies reveal that land resources will inevitably be reallocated (e.g., rented out) if the resources of family labor are reallocated (e.g., off-farm employment). However, this study reveals that off-farm employment does not inevitably lead to land rent out. More precisely, this study uses survey data on 8031 peasant households from 27 provinces in China and explores the relationship between off-farm employment and land rent out by describing spatial features and through empirical analysis (e.g., IV-Probit model and IV-Tobit model). The results show the following: 1) There is an indirect relationship between off-farm employment and land rent out regarding spatial area aggregation, i.e., regions with a higher ratio of off-farm employment also have a lower area of land rent out. 2) Off-farm employment is significantly positively correlated with the behavior of land rent out, but its square is significantly negatively correlated with the behavior, i.e., there is an inverted U-shaped relationship between off-farm employment and the behavior of land rent out, with the turning point being 55.55% off-farm employment. 3) Off-farm employment is significantly positively correlated with the area of land rent out, but its square is significantly negatively correlated with the area, i.e., there is an inverted U-shaped relationship between off-farm employment and the area of land rent out, with the turning point being 56.22% off-farm employment. This study helps explain why China has a high ratio of off-farm employment but a lower rate of land rent out.

Development impacts of migration and remittances on migrant-sending communities: Evidence from Ethiopia.

This paper evaluates the development impacts of migration and remittances in migrant source communities by applying insights from the New Economics of Labor Migration (NELM) theory to Ethiopia’s migration. Using household survey data, we empirically evaluate how household participation in migration arises and so that the subsequent labor losses and the influx of remittances affect income sources and asset accumulation of smallholder farm households. To account several econometric issues and consistently estimate the impacts of migration and remittances, we adopted three-stage least-squares method complemented with endogeneity and multicollinearity test. Besides, using logistic and multinomial logistic regressions respectively, we estimate the determinants of the household migration decision to have migrants, as well as the probability of the household to send out temporary or permanent migrants. Findings suggest that larger and wealthier households are less likely to have migrant family members, while households living below the poverty line, as well as villages with the highest unemployment rate, are the most likely to have both temporary and permanent migrants. However, a rise in months spent out of agriculture has a significant negative effect on crop income and asset accumulation, but only for permanent migration. By contrast, the influx of remitted income from migrants has led to increased crop income and asset values in the form of land and livestock holdings. Finally, this manuscript provides more comprehensive evidence by showing the net-returns of migration in terms of initial lost-labor effects and the positive developmental impacts that it produces varied for households with different types of migration and production conditions.

¿Retorno o remesas? Políticas económicas de los Estados de Latinoamérica y el Caribe hacia su diáspora

Explanations of why migrants return to their countries of origin tend to focus on factors at micro and macro levels: from seeing it as individual choice (e. g. neoclassical economics) or household strategy (e. g. new economics of labor migration), to seeing it as determined by structural conditions of receiving or sending countries (e. g. economic cycles, wage differentials, etc.). Yet we know very little about how states of origin combine their policies towards emigrants to establish economic links with them, from remittances to return. With an original dataset for Latin American and Caribbean countries, we can provide an initial descriptive panorama that highlights the choices that countries make in this regard. We compare the return policies to other economic policies geared to emigrants. This helps us in detecting return policies, which is often a neglected dimension in comparative diaspora policy studies, as one among several that states of origin develop to achieve their economic strategies. Also, this first attempt at descriptive analysis provides further paths to explore the causal links behind diaspora policy development in the realm of economic policy.

Influences of labor migration on rural household land transfer: A case study of Sichuan Province, China

The influence of labor migration on rural household land transfer has been hotly debated in academic circles, which focuses on whether part-time employment leads to land transfer. Using survey data on rural households in the Sichuan Province, and applying the theoretical framework of new economics of labor migration, this study explores the influences of labor migration on the direction and scale of land transfer from the perspective of rural household structure. The results indicate that: 1) the quantity of laborers has significant influence on the direction and scale of land transfer. The larger the on-farm labor variable (Labor), the lesser the possibility that land will be rented-out and the amount of land rented out will also be smaller. In addition, there is a greater probability that land will be rented-in and the amount of land rented-in will be greater. 2) The greater the ratio of off-farm laborers to rural household laborers (Off-farm) the greater the possibility that land will be rented-out. In addition the higher the ratio of on-farm laborers to the total household laborers (On-farm), the larger the possibility that land will be rented-in. Meanwhile, if the household has individuals at the age of 64 or older (Old) who are engaged in agriculture, there is a smaller possibility that land will be rented-out. 3) the ratio of part-time laborers to rural household laborers (Pluriactivity) have significant inverse U-shaped influences on the rent-in of land as well as the amount of land rented-in. The inflection points are 33.27% and 14.10%, respectively. Such findings confirm the significance of this study in better understanding the influence of labor migration on rural household land transfer.

Temporary Protected Status and Immigration to the United States

Although immigration reform has proved elusive for more than forty years, presidents from both parties have issued crucial executive actions that regulate inflows of new immigrants and the status of those already in the US. We focus on a particular class of executive actions, those related to granting immigrants Temporary Protected Status (TPS), exploiting the fact that immigrants who hold TPS receive access to the formal US labor market regardless of their legal status. Harnessing the New Economics of Labor Migration (NELM), we hypothesize that granting TPS to immigrants increases remittances to crisis-affected countries, decreasing the demand for both legal and illegal entry into the United States. We find robust statistical support for this hypothesis, and we also use synthetic control methods to evaluate TPS as a policy lever in prominent TPS-eligible countries. Our findings shed light on potentially unintended consequences that flow from providing labor market access to immigrants in the United States.

Chapter 6 – Mobility, migration and transnational connectivity

Chapter 6 – Mobility, migration and transnational connectivity

THE IMPACT OF MIGRATION AND REMITTANCES ON DISTRIBUTION AND SOURCES OF INCOME: THE MEXICAN RURAL CASE

The objective of this research is to determine the impact of migration and remittances on rural households’ income sources, as well as the implications of these impacts on the income distribution of the source communities. Using data from the Mexico National Rural Household Survey (Encuesta Nacional a Hogares Rurales de México, ENHRUM), the results show that national remittances and the predicted number of internal migrants impact in a positive way the incomes obtained from livestock activities. However, international remittances impact negatively on this income source due to the household’s loss of one of its members. Also, the results support the new economics of labor migration (NELM) hypothesis that points out that the remittances eliminate restrictions in different types of rural households’productive activities.

Social Determinants of Remitting Practices among Bangladeshi Migrants in Japan

Why do migrants send remittances? Through ethnographic fieldwork and in-depth interviews among Bangladeshi migrants in Tokyo, this article explores the social determinants of migrants’ remitting practices. It offers a realist analytical approach following Durkheim’s perspective on how society determines an individual’s action. It recognizes social relations between the migrants and their families and relatives as the essential foundation for remitting to occur, while migrants’ adherence to social norms, as well as legal and social exclusion in the destination, causes them to participate in various qualitatively distinct remitting practices. Therefore, it argues that migrants’ social relations to the family and community cause them to remit, and changes in these relations result in subsequent changes in their remitting. It complements the New Economics of Labor Migration (NELM) approach by incorporating the social (both relational and spatial) context of remitting. By bringing in migrants’ agency, it also overcomes the limitations in social-cultural approaches that prioritize structural determinants.

Migration and Environment

The concept of environmental migrants occurs frequently in the policy debate, in particular with regard to climate change and the incidence of such migration in low-income countries. This article reviews the economic studies of environmentally induced migration. It includes recent empirical analyses that try to link environmental change to migration flows and the spatial distribution of population. A consensus seems to emerge that there is little likelihood of large increases in international migration flows due to climate variability. The evidence to date shows that regional migration will be affected, however, either on the African continent or internally, within country borders. Theoretically, environmentally induced migration can be analyzed using different frameworks: the classical Harris-Todaro model of rural-urban migration, new economic geography models, models grounded in environmental economics of pollution externalities with free factor mobility, and the new economics of labor migration. I review some of the latest attempts to analyze environmentally induced migration theoretically and the policy-relevant conclusions that can be drawn.

We never plan to return home: voices of pre-migrant Ghanaian youth

This qualitative study aimed to explore return migration intentions among pre-migrant youth in Ghana. The study applied the neoclassical economics, new economics of labor migration, and structuralist theories. Thirty-four students (16 females and 18 males) were purposively recruited as participants for the study. Each student participated in one out of four digitally recorded focus group discussions. The data were analyzed to identify emerging themes that addressed objectives of the study. Participants were final year undergraduate and graduate university students and their ages ranged from 22 to 34 years. Analysis of the data revealed that participants had plans to migrate to the diaspora to seek income-generating and educational opportunities. Furthermore, evidence showed that the youth included in this study had no intentions of returning to their country of origin due to three major reasons (economic, family pressure, and stigma). For many pre-migrants, returning to their country of origin is not an option, especially if they are able achieve their goals in the diaspora. Given that return migration usually involves labor migrants who did not reap the benefits of higher earnings abroad and were therefore regarded as failed migrants, there is the need for government and other stakeholders to initiate policies that address the socioeconomic and psychological challenges faced by return migrants.

Negotiating Migration, Performing Gender

Increasing numbers of independent women labor migrants leave countries in the Global South every year to work overseas. However, our understanding of how exactly gender and migration intersect at the decision-making moment is still inadequate. The new economics of labor migration (NELM) argument that individual migration is a household-level decision has been criticized by feminist scholars for ignoring the gendered social norms and inequitable intra-household power distribution that can make it difficult for prospective independent female labor migrants to leave their homes to work overseas. To reconcile NELM with gender reality, I propose an explicitly gendered, “negotiated migration model” that separates the pre-migratory process into three parts: an individual-level aspiration, the household-/family-level negotiation, and only then, the migration decision. The intermediate negotiation phase is a dynamic, two-sided, discursive site where both the aspiring migrant and her relatives engage in gendering practices and gender performances to bolster their respective positions. Interviews with 139 Filipino migrant domestic workers reveal that successful female migrants win their families' support by coopting gendered scripts prevalent in Philippine society. Rather than attempting to “undo” gender, these women reframe their migration aspirations as a duty, rather than a right, to migrate, and a logical extension of their traditional, supporting roles as daughters, wives, sisters, and/or mothers. Thus, even though these women migrants break gender barriers when it comes to their independent labor migration, they do so by “doing,” rather than “undoing,” gender.

Migration, remittances and smallholder decision-making: Implications for land use and livelihood change in Central America

We model Central American migrant-sending household agricultural practices given labor losses and the concomitant infusion of remittances. Under the new economics of labor migration (NELM) framework, it is hypothesized that smallholder farm households invest remittance income in their land either to increase crop production or to transition to cattle ranching. We test this hypothesis by developing a combination of multivariate logistic, Poisson and beta regression techniques using Latin American Migration Project data to determine how agricultural land use change compared among migrant and non-migrant households in Costa Rica, El Salvador, Guatemala, and Nicaragua. Results indicate that a rise in months spent abroad and remittances returned do not translate into a higher percentage of farm sales, intensification or transition to cattle ranching – counter to NELM. However, farmers are investing remittances to increase row crop and pasture land holdings. These findings suggest remittance investments in quantitative increase rather than qualitative change in land use practices. Given the expansive land demands supporting low intensity smallholder agriculture and cattle, and the land degradation cattle precipitate particularly, the trend does not augur well for the sustainability of rural landscapes increasingly transformed by international remittances. Appropriate policies to champion coupled human-land system sustainability in Central America might usefully consider viable land use alternatives to remittance investments dedicated to crop and pasture expansion.

Do Rainfall Deficits Predict U.S.-Bound Migration from Rural Mexico? Evidence from the Mexican Census

Environmental and climatic changes have shaped human mobility for thousands of years and research on the migration-environment connection has proliferated in the past several years. Even so, little work has focused on Latin America or on international movement. Given rural Mexico's dependency on primary sector activities involving various natural resources, and the existence of well-established transnational migrant networks, we investigate the association between rainfall patterns and U.S.-bound migration from rural locales, a topic of increasing policy relevance. The New Economics of Labor Migration (NELM) theory provides background, positing that migration represents a household-level risk management strategy. We use data from the year 2000 Mexican census for rural localities and socioeconomic and state-level precipitation data provided by the Mexican National Institute for Statistics and Geography. Multilevel models assess the impact of rainfall change on household-level international out-migration while controlling for relevant sociodemographic and economic factors. A decrease in precipitation is significantly associated with U.S.-bound migration, but only for dry Mexican states. This finding suggests that programs and policies aimed at reducing Mexico-U.S. migration should seek to diminish the climate/weather vulnerability of rural Mexican households, for example by supporting sustainable irrigation systems and subsidizing drought-resistant crops.

Migration and Credit Constraints: Theory and Evidence from Vietnam

AbstractThe new economics of labor migration (NELM) frequently emphasizes the importance of migration as a way for rural households to overcome credit constraints. If this hypothesis is correct, then the credit constraint is a motivation for migration (a relaxation of this constraint would encourage less migration). Conventionally, it is believed that migration is costly and has to be financed with borrowed capital, so the credit constraint is a deterrent of migration (a relaxation of this constraint would encourage more migration). In this paper, an agricultural household model is developed to study whether the credit constraint is a motivation for or a deterrent to migration. The model's result confirms the NELM's hypothesis: for households with high demand for agricultural investments and high net migration return, migration is used as a way to finance capital investments. Using data from four provinces in Vietnam, preliminary evidence is found supporting this hypothesis.

Emigration and the Family Economy: Bangladeshi Labor Migration to Saudi Arabia

The new economics of labor migration explains migration as part of family strategies to address income risks and capital constraints in developing countries. However, it does not adequately take into account the risks and costs borne by migrant families in contemporary labor migration. This paper examines the emigration-family economy nexus highlighting the undercurrent of risks in the labor migration process. This study draws from the experiences of Bangladeshi families who have family members working in Saudi Arabia. The research reports that migrants often undertake international migration at great costs of their own, incurring large debts, risking personal savings and family assets, and accentuating income risks and capital constraints, while the remittances are meager in the repair of such family economy.